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Author Topic: Where do I start with bitcoin transactions?  (Read 118 times)
jn2020 (OP)
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November 23, 2020, 08:12:22 AM
 #1

hi guys,

first of all, I apologize for being a complete bitcoin noob.

if I want to start doing transactions with bitcoin, where would I start?

I only know vague stuff I've been hearing left and right. stuff like electronic wallets, mining and blockchain, but if I want to let's say own 0.000001 bitcoins, how would I actually do that from scratch?

thanks!
John
jackg
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November 23, 2020, 08:17:34 AM
 #2

Buy it?

You're going to have to elaborate on this one.

Do you have bitcoin? Are you after somewhere to buy it? Are you after somewhere to earn it?
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November 23, 2020, 08:33:49 AM
 #3

how would I actually do that from scratch?

If you want to understand transactions as an user, I think that easiest is to play on testnet. That's a "test" blockchain for Bitcoin and the coins have no value hence you can get for free, from faucets, enough coins for your tests.

1. Install a simple wallet, like Electrum (make sure you download it from electrum.org; it would be also nice you verify the signature for when you work with real coins https://bitcoinelectrum.com/how-to-verify-your-electrum-download/).
2. Run it with --testnet parameter so you run on a test blockchain with free coins ( https://bitcoin.stackexchange.com/questions/76598/how-to-get-electrum-3-1-3-on-bitcoin-testnet )
3. Create yourself a new wallet, get some free testnet coins from a testnet faucet (use a search engine, make sure you search for bitcoin testnet faucet and don't worry if not all the faucets actually work, just find one that actually send you coins)
4. Create yourself second a new wallet (also on testnet)
5. Make transactions between your wallets and also inside the same wallet.
6. Look up the addresses and transactions also on a testnet block explorer ( https://live.blockcypher.com/btc-testnet/ )
7. When you understood it all, send your remaining coins to the faucet.

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20kevin20
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November 23, 2020, 08:50:32 AM
 #4

Well, it depends on how you want to get that BTC. You could purchase, trade, mine, do tasks (or provide some service) or play with some faucets.

Currently, 0.000001 is worth around $0.018 which would be just "dust" (an amount so small it's basically useless). Before actually owning a significant amount of Bitcoin though, it's okay to start from low amounts just to play with it.

I'd advise you to care about your privacy straight from the start. Hence, no matter what you do, try to avoid giving out personal information and completing Know-Your-Customer (KYC) forms. You do not need to prove someone your identity to use Bitcoin. With BTC, you're your own bank. One more thing I'd advise you not to do is use centralized/custodial services. If there is a decentralized option, while it may cost more money and/or time, it is worth it in the end. Your personal information is worth a lot of money. I would say it's actually priceless.

Now the first thing you can do is read. Try to gather as much information as possible from many sources, because the more you know, the better you will be. You can start off by reading the original whitepaper, exploring the Bitcoin Wiki and Bitcoin.org's Getting Started page with the documentation for newcomers. Another website I particularly love is Bitcoin Privacy Guide. If after these two you find privacy an interesting subject, you may find Wasabi Wallet's documentation interesting as well. They offer a ton of very helpful information - especially for protecting your digital identity - which is easy to understand for anyone .. even newbies.

If you want to start using a wallet, I'd suggest you use Electrum as it's non-custodial and has a lot of functions you can play with. Remember to always save your seed when creating your first wallet. The seed is a backup phrase for your funds. If you don't have it, there's nobody who can help you with the recovery of your funds. Storing seed properly means storing it offline, such as on a piece of paper. When you'll have more money in a wallet, you may consider storing your seed on a metal to protect it from fire and other risks paper storage comes with over time.

The Wasabi Wallet I linked you to above is amazing, but in my opinion it's too advanced for a newbie. Hence, just go for Electrum. Electrum has its own documentation page as well.

Mining is quite hard to start with today without a huge load of money to spend on mining equipment, because it requires a lot of money to invest and re-invest and in the end you may end up earning as much Bitcoin as you'd pay for electricity used to mine it - or even less than that.

I'll help you out with your first transaction.

Try downloading Electrum, launch it and create a wallet. To make it easier for you, choose the following upon the initial launch:
  1. Auto connect
  2. Give your wallet a name
  3. Standard wallet
  4. Create a new seed
  5. Segwit
  6. Write down the given seed on a piece of paper and push Next
  6. Write the seed you now have on paper in the empty box and push Next
  7. Enter (if you want) a password to secure your wallet and you're done!

Now go to the Receive tab and get yourself a receiving address by pushing the "Request" button. Post your address here as a reply (should be in the right side of Electrum, starting with "bc1"), and I will give you a thousand satoshis (0.00001). Your next task will be sending it back to me, so that you know both how receiving and spending works. Smiley
MusaMohamed
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November 23, 2020, 12:37:18 PM
Merited by SquirrelJulietGarden (1)
 #5

if I want to start doing transactions with bitcoin, where would I start?
You need a wallet (bitcoin wallet to store your bitcoin). There are 2 types of bitcoin wallets: custodial wallet and non-custodial wallet. Custodial wallet is the wallet is mostly used and provided by exchanges, crypto gambling sites, marketplaces and those companies have private key or mnemonic seed, you don't have. Non-custodial wallets are wallet type that gives you full control on private key, mnemonic seeds and you are totally control your wallet.

Bitcoin Core (at the top left of forum): https://bitcoin.org/en/download
Electrum: https://electrum.org/#download

Bitcoin Core give you private key and it is weight. If you don't have much free data space in your disk, you can choose to run prune node.
Electrum give you mnemonic seed. It is light.

Quote
mining and blockchain, but if I want to let's say own 0.000001 bitcoins, how would I actually do that from scratch?
You need to buy it or get it from any where else (online jobs, faucets, example) and you need to have a wallet to store it.

To check your transactions: you can do it with block explorers which are given here List of useful Bitcoin block explorers but I'd like to use https://blockchair.com/ and https://blockstream.info/.

Transactions:
Transaction (bitcoin wiki)
Transactions (chapter 6. Mastering bitcoin)

R


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jademaxxiss012
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November 23, 2020, 12:50:56 PM
 #6

You should have a bitcoin wallet first. You may obtain it freely like those centralized exchange that offer their wallets for you to access and store your btc being bought. But know it that exchange wallets are not secured so you need to have a good bitcoin wallet if ever you are thinking of buying bulk of bitcoins in the future. Online bitcoin wallets or hardware wallets like mobile bitcoin wallets are available. Just save the seed phrase(it all generated the private keys) and know your public address that could be used to receive bitcoin when you will buy it in the exchange. I suggest to buy smaller amount of bitcoin first to test it out so that whenever you failed you will not going to worry with the possible money that you will going to lose. Anyway, think also the amount of transaction that be deducted in you as transaction fee. It can be high and probably you will not going to like.
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November 23, 2020, 01:48:45 PM
 #7

hi guys,

first of all, I apologize for being a complete bitcoin noob.

if I want to start doing transactions with bitcoin, where would I start?

I only know vague stuff I've been hearing left and right. stuff like electronic wallets, mining and blockchain, but if I want to let's say own 0.000001 bitcoins, how would I actually do that from scratch?

thanks!
John
In order to make transactions, you need to acquire an amount of it first and that would be made possible by investing into it(easiest way if you have the money to invest), or acquire through different ways such as doing bounties, airdrop, and other contests in this forum. You may also offer services and demand crypto as mode of payment. These are the things I know simply because this is where I have started in this industry. There are other ways and you may search for it online.

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